Japan's Crypto Asset Regulation Law Officially Implemented, Liability Reserves May Trigger Industry Restructuring

According to The Nikkei, Japan's amended Financial Instruments and Exchange Act was passed by a vote at the plenary session of the House of Councillors on July 15, officially incorporating crypto assets (virtual currencies) into the financial product regulatory framework. While strengthening user protection, the new law requires exchanges to maintain liability reserves, a move widely expected by the industry to become a major trigger for elimination and consolidation within the sector. Masahiko Saito, Director of the Market Division of the Financial Services Agency, clearly stated that the Financial Services Agency does not endorse crypto asset trading nor make any recommendations.